MD_DA840
Cheese - Western U.S.
Report 37 - Released on September 11, 2019
Western cheese makers say there is plenty of milk available for processing, and they are
running plants near full capacity. Strong seasonal pizza demand is promoting the production
of mozzarella. And the wide spread between block and barrel prices is encouraging block
production. Some industry contacts are trying to make sense of the lift in cheese prices on
the CME, especially for the 40-pound block price. They see demand as adequate to keep cheese
stock piles from ballooning, but export demand has been stifled by the higher market prices
within the United States compared to world market prices. The daily close for blocks touched
the $2 mark for the first time since November 2014 this week. Contacts suggest supplies of
block cheese that meet CME trading requirements are limited, giving a push to block prices.
Western cheese contacts relay that demand has been strong for block cheese, with some
suppliers heavily committed over the next few months. However, with languid consumer demand
for processed cheese, contacts also suggest there is currently no shortage of barrels and
640s. The concern is how well the market can regain a balance. Block and barrel prices may
moderate somewhat, but the concern is that stronger milk prices and cheap feed may
incentivize more milk production and, subsequently, more cheese production. A few contacts
suspect that without the potential for new market opportunities, the U.S. may again have a
lot of cheese that is hard to sell.
National Retail Report Dairy ± Cheese Summary
Advertised Prices at Major Retail Supermarket Outlets ending during the period of 9/6/2019
to 9/12/2019
Cheese 8 oz. Blocks Weighted Average Price
National This Period Last Week Last Year
Conventional $2.10 $2.23 $2.20
Organic $3.49 n.a. $5.99
Regional (Conventional) Wtd. Ave. Low High
Alaska $2.79 $2.79 $2.79
Hawaii $2.78 $2.50 $2.98
Northwest $1.99 $1.99 $1.99
Southwest $2.16 $2.00 $2.50
Cheese 8 oz. Shred Weighted Average Price
National This Period Last Week Last Year
Conventional $2.31 $2.37 $2.38
Organic $3.79 n.a. n.a.
Regional (Conventional) Wtd. Ave. Low High
Alaska $4.05 $2.79 $5.00
Hawaii $2.78 $2.50 $2.98
Northwest $2.23 $1.99 $2.99
Southwest $2.49 $2.00 $3.00
Regional (Organic) Wtd. Ave. Low High
Northwest $3.79 $3.79 $3.79
Western Wholesale Price Adjustments
In the West, wholesale prices were up $.0450 for process, and up $.0725 for cheddar block,
cuts and Monterey Jack. Swiss cut wholesale prices are down $.0125 from the previous week.
WHOLESALE SELLING PRICES: DELIVERED
DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))
Cheddar 10 pound Cuts 2.3000-2.5000
Cheddar 40 pound Block 2.0525-2.5425
Monterey Jack 10 pounds 2.2875-2.5625
Process American 5 pound Loaf 1.8400-2.0950
Swiss 6-9 pound Cuts 2.8625-3.2925
Information for the period September 9 - 13, 2019, issued weekly
Published by:
Dairy Market News - Madison, WI
MIKE BANDLI, (608)422-8592
Email: mike.bandli@usda.gov
Additional Dairy Market News Information:
Dairy Market News (DMN) by Phone: (608)422-8602
DMN Website: https://www.ams.usda.gov/market-news/dairy
DMN MARS (My Market News): https://mymarketnews.ams.usda.gov